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st: 3SLS and discrete choise in STATA?
we want to consider an equation discrete choice system in the following
y1=f(x1, y2) and
y2=f(x2, y1) where
x1 and x2 are vectors of exogenous characteristics and y1 and y2 are
multinomial and conditional logit equations.
After examining several literature, it seems to be necessary to set up a
3SLS regression. Since the discrete choice framework has to be
considered, pure 3SLS in STATA might lead to wrong results, even more it
is not appropriate.
Is there somebody who did overcome that problem?
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